Title 26 — Internal Revenue Code
Part IV · Chapter 1 — Normal Taxes and Surtaxes
§ 25B. Elective deferrals and IRA contributions by certain individuals
Statutory text
Allowance of credit
In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the applicable percentage of so much of the qualified retirement savings contributions of the eligible individual for the taxable year as do not exceed $2,000.
Applicable percentage
For purposes of this section—
Joint returns
In the case of a joint return, the applicable percentage is—
if the adjusted gross income of the taxpayer is not over $30,000, 50 percent,
if the adjusted gross income of the taxpayer is over $30,000 but not over $32,500, 20 percent,
if the adjusted gross income of the taxpayer is over $32,500 but not over $50,000, 10 percent, and
if the adjusted gross income of the taxpayer is over $50,000, zero percent.
Other returns
In the case of—
a head of household, the applicable percentage shall be determined under paragraph (1) except that such paragraph shall be applied by substituting for each dollar amount therein (as adjusted under paragraph (3)) a dollar amount equal to 75 percent of such dollar amount, and
any taxpayer not described in paragraph (1) or subparagraph (A), the applicable percentage shall be determined under paragraph (1) except that such paragraph shall be applied by substituting for each dollar amount therein (as adjusted under paragraph (3)) a dollar amount equal to 50 percent of such dollar amount.
Inflation adjustment
In the case of any taxable year beginning in a calendar year after 2006, each of the dollar amounts in paragraph (1) shall be increased by an amount equal to—
such dollar amount, multiplied by
the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting “calendar year 2005” for “calendar year 2016” in subparagraph (A)(ii) thereof.
Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $500.
Eligible individual
For purposes of this section—
In general
The term “eligible individual” means any individual if such individual has attained the age of 18 as of the close of the taxable year.
Dependents and full-time students not eligible
The term “eligible individual” shall not include—
any individual with respect to whom a deduction under section 151 is allowed to another taxpayer for a taxable year beginning in the calendar year in which such individual’s taxable year begins, and
any individual who is a student (as defined in section 152(f)(2)).
Qualified retirement savings contributions
For purposes of this section—
In general
The term “qualified retirement savings contributions” means, with respect to any taxable year, the sum of—
the amount of contributions made by the eligible individual during such taxable year to the ABLE account (within the meaning of section 529A) of which such individual is the designated beneficiary, and
in the case of any taxable year beginning before —
the amount of the qualified retirement contributions (as defined in section 219(e)) made by the eligible individual,
the amount of—
any elective deferrals (as defined in section 402(g)(3)) of such individual, and
any elective deferral of compensation by such individual under an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A), and
the amount of voluntary employee contributions by such individual to any qualified retirement plan (as defined in section 4974(c)).
Reduction for certain distributions
In general
The qualified retirement savings contributions determined under paragraph (1) shall be reduced (but not below zero) by the aggregate distributions received by the individual during the testing period from any entity of a type to which contributions under paragraph (1) may be made. The preceding sentence shall not apply to the portion of any distribution which is not includible in gross income by reason of a trustee-to-trustee transfer or a rollover distribution.
Testing period
For purposes of subparagraph (A), the testing period, with respect to a taxable year, is the period which includes—
such taxable year,
the 2 preceding taxable years, and
the period after such taxable year and before the due date (including extensions) for filing the return of tax for such taxable year.
Excepted distributions
There shall not be taken into account under subparagraph (A)—
any distribution referred to in section 72(p), 401(k)(8), 401(m)(6), 402(g)(2), 404(k), or 408(d)(4), and
any distribution to which section 408A(d)(3) applies.
Treatment of distributions received by spouse of individual
For purposes of determining distributions received by an individual under subparagraph (A) for any taxable year, any distribution received by the spouse of such individual shall be treated as received by such individual if such individual and spouse file a joint return for such taxable year and for the taxable year during which the spouse receives the distribution.
Adjusted gross income
For purposes of this section, adjusted gross income shall be determined without regard to sections 911, 931, and 933.
Investment in the contract
Notwithstanding any other provision of law, a qualified retirement savings contribution shall not fail to be included in determining the investment in the contract for purposes of section 72 by reason of the credit under this section.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Pub. L. 107–16 title VI § 618(a) · 115 Stat. 38
Enacted · 26 U.S.C. § 25B
Added and amended Pub. L. 107–16, title VI, § 618(a), (b)(1), June 7, 2001, 115 Stat. 106, 108
Source evidence
Code source credit
Added and amended Pub. L. 107–16, title VI, § 618(a), (b)(1), June 7, 2001, 115 Stat. 106, 108Enacted provision · exact public law section
(a) In General.— Subpart A of part IV of subchapter A of chapter 1 (relating to nonrefundable personal credits) is amended by inserting after section 25A the following new section: “SEC. 25B. ELECTIVE DEFERRALS AND IRA CONTRIBUTIONS BY CERTAIN INDIVIDUALS. “(a) Allowance of Credit.— In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the applicable percentage of so much of the qualified retirement savings contributions of the eligible individual for the taxable year as do not exceed $2,000. “(b) Applicable Percentage.— For purposes of this section, the applicable percentage is the percentage determined in accordance with the following table: Adjusted Gross Income Applicable percentage Joint return Head of a household All other cases Over Not over Over Not over Over Not over $30,000 $22,500 $15,000 50 30,000 32,500 22,500 24,375 15,000 16,250 20 32,500 50,000 24,375 37,500 16,250 25,000 10 50,000 37,500 25,000 0 “(c) Eligible Individual.— For purposes of this section— “(1) In general.— The term ‘eligible individual’ means any individual if such individual has attained the age of 18 as of the close of the taxable year. “(2) Dependents and full-time students not eligible.— The term ‘eligible individual’ shall not include— “(A) any individual with respect to whom a deduction under section 151 is allowed to another taxpayer for a taxable year beginning in the calendar year in which such individual’s taxable year begins, and “(B) any individual who is a student (as defined in section 151(c)(4)). “(d) Qualified Retirement Savings Contributions.— For purposes of this section— “(1) In general.— The term ‘qualified retirement savings contributions’ means, with respect to any taxable year, the sum of— “(A) the amount of the qualified retirement contributions (as defined in section 219(e)) made by the eligible individual, “(B) the amount of— “(i) any elective deferrals (as defined in section 402(g)(3)) of such individual, and “(ii) any elective deferral of compensation by such individual under an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A), and “(C) the amount of voluntary employee contributions by such individual to any qualified retirement plan (as defined in section 4974(c)). “(2) Reduction for certain distributions.— “(A) In general.— The qualified retirement savings contributions determined under paragraph (1) shall be reduced (but not below zero) by the sum of— “(i) any distribution from a qualified retirement plan (as defined in section 4974(c)), or from an eligible deferred compensation plan (as defined in section 457(b)), received by the individual during the testing period which is includible in gross income, and “(ii) any distribution from a Roth IRA or a Roth account received by the individual during the testing period which is not a qualified rollover contribution (as defined in section 408A(e)) to a Roth IRA or a rollover under section 402(c)(8)(B) to a Roth account. “(B) Testing period.— For purposes of subparagraph (A), the testing period, with respect to a taxable year, is the period which includes— “(i) such taxable year, “(ii) the 2 preceding taxable years, and “(iii) the period after such taxable year and before the due date (including extensions) for filing the return of tax for such taxable year. “(C) Excepted distributions.— There shall not be taken into account under subparagraph (A)— “(i) any distribution referred to in section 72(p), 401(k)(8), 401(m)(6), 402(g)(2), 404(k), or 408(d)(4), and “(ii) any distribution to which section 408A(d)(3) applies. “(D) Treatment of distributions received by spouse of individual.— For purposes of determining distributions received by an individual under subparagraph (A) for any taxable year, any distribution received by the spouse of such individual shall be treated as received by such individual if such individual and spouse file a joint return for such taxable year and for the taxable year during which the spouse receives the distribution. “(e) Adjusted Gross Income.— For purposes of this section, adjusted gross income shall be determined without regard to sections 911, 931, and 933. “(f) Investment in the Contract.— Notwithstanding any other provision of law, a qualified retirement savings contribution shall not fail to be included in determining the investment in the contract for purposes of section 72 by reason of the credit under this section. “(g) Termination.— This section shall not apply to taxable years beginning after December 31, 2006.”.Pub. L. 107–16 § 618(b)(1) · 115 Stat. 38
Added · 26 U.S.C. § 25B(g)
Pub. L. 107–16, § 618(b)(1), added subsec. (g) relating to limitation based on amount of tax
Source evidence
Code amendment note
Subsec. (g). Pub. L. 107–16, § 618(b)(1), added subsec. (g) relating to limitation based on amount of tax.Enacted provision · exact public law section
(1) In general.— Section 25B, as added by subsection (a), is amended by inserting after subsection (f) the following new subsection: “(g) Limitation Based on Amount of Tax.— The credit allowed under subsection (a) for the taxable year shall not exceed the excess of— “(1) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over “(2) the sum of the credits allowable under this subpart (other than this section and section 23) and section 27 for the taxable year.”.Job Creation and Worker Assistance Act of 2002
Pub. L. 107–147 § 411(m) · 116 Stat. 21
Amended · 26 U.S.C. § 25B(d)(2)(A)
Pub. L. 107–147, § 411(m), reenacted heading without change and amended text of subpar. (A) generally. Prior to amendment, text read as follows: “The qualified retirement savings contributions determined under paragraph (1) shall be reduced (but not below zero) by the sum of—
Source evidence
Code amendment note
Subsec. (d)(2)(A). Pub. L. 107–147, § 411(m), reenacted heading without change and amended text of subpar. (A) generally. Prior to amendment, text read as follows: “The qualified retirement savings contributions determined under paragraph (1) shall be reduced (but not below zero) by the sum of—“(i) any distribution from a qualified retirement plan (as defined in section 4974(c)), or from an eligible deferred compensation plan (as defined in section 457(b)), received by the individual during the testing period which is includible in gross income, and “(ii) any distribution from a Roth IRA or a Roth account received by the individual during the testing period which is not a qualified rollover contribution (as defined in section 408A(e)) to a Roth IRA or a rollover under section 402(c)(8)(B) to a Roth account.”
Enacted provision · exact public law section
(m) Amendment Relating to Section 618 of the Act.— 26 USC 25B. Section 25B(d)(2)(A) is amended to read as follows: “(A) In general.— The qualified retirement savings contributions determined under paragraph (1) shall be reduced (but not below zero) by the aggregate distributions received by the individual during the testing period from any entity of a type to which contributions under paragraph (1) may be made. The preceding sentence shall not apply to the portion of any distribution which is not includible in gross income by reason of a trustee-to-trustee transfer or a rollover distribution.”.Job Creation and Worker Assistance Act of 2002
Pub. L. 107–147 § 417(1) · 116 Stat. 21
Redesignated · 26 U.S.C. § 25B(g); 26 U.S.C. § 25B(h)
Pub. L. 107–147, § 417(1), redesignated subsec. (g), relating to termination, as (h)
Source evidence
Code amendment note
Subsecs. (g), (h). Pub. L. 107–147, § 417(1), redesignated subsec. (g), relating to termination, as (h).Enacted provision · exact public law section
(1) The subsection (g) of section 25B that relates to termination is redesignated as subsection (h).Working Families Tax Relief Act of 2004
Pub. L. 108–311 title II § 207(4) · 118 Stat. 1166
Substituted · 26 U.S.C. § 25B(c)(2)(B)
Pub. L. 108–311 substituted “152(f)(2)” for “151(c)(4)”
Source evidence
Code amendment note
Subsec. (c)(2)(B). Pub. L. 108–311 substituted “152(f)(2)” for “151(c)(4)”.Enacted provision · exact public law section
(4) Section 25B(c)(2)(B) is amended by striking “151(c)(4)” and inserting “152(f)(2)”.Tax Technical Corrections Act of 2005
Pub. L. 109–135 title IV § 402(i)(3)(D) · 119 Stat. 2577
Substituted · 26 U.S.C. § 25B(g)
Pub. L. 109–135 substituted “In the case of a taxable year to which section 26(a)(2) does not apply, the credit” for “The credit” in introductory provisions
Source evidence
Code amendment note
Subsec. (g). Pub. L. 109–135 substituted “In the case of a taxable year to which section 26(a)(2) does not apply, the credit” for “The credit” in introductory provisions.Enacted provision · exact public law section
(D) The matter preceding 26 USC 25B. paragraph (1) of section 25B(g) is amended by striking “The credit” and inserting “In the case of a taxable year to which section 26(a)(2) does not apply, the credit”.Pub. L. 109–280 § 833(a) · 120 Stat. 780
Amended · 26 U.S.C. § 25B(b)
Pub. L. 109–280, § 833(a), reenacted heading without change and amended text of subsec. (b) generally
Substituted · 26 U.S.C. § 25B(b)
Pub. L. 109–280, § 833(a), reenacted heading without change and substituting provisions consisting of introductory provisions and pars. (1) to (3) for former provisions consisting of introductory provisions and a table of applicable percentages for amounts of adjusted gross income for a joint return, a head of household, and all other cases
Source evidence
Code amendment note
Subsec. (b). Pub. L. 109–280, § 833(a), reenacted heading without change and amended text of subsec. (b) generally, substituting provisions consisting of introductory provisions and pars. (1) to (3) for former provisions consisting of introductory provisions and a table of applicable percentages for amounts of adjusted gross income for a joint return, a head of household, and all other cases.Enacted provision · exact public law section
(a) Saver’s Credit.— Subsection (b) of section 25B of the Internal Revenue Code of 1986 is amended to read as follows: “(b) Applicable Percentage.— For purposes of this section— “(1) Joint returns.— In the case of a joint return, the applicable percentage is— “(A) if the adjusted gross income of the taxpayer is not over $30,000, 50 percent, “(B) if the adjusted gross income of the taxpayer is over $30,000 but not over $32,500, 20 percent, “(C) if the adjusted gross income of the taxpayer is over $32,500 but not over $50,000, 10 percent, and “(D) if the adjusted gross income of the taxpayer is over $50,000, zero percent. “(2) Other returns.— In the case of— “(A) a head of household, the applicable percentage shall be determined under paragraph (1) except that such paragraph shall be applied by substituting for each dollar amount therein (as adjusted under paragraph (3)) a dollar amount equal to 75 percent of such dollar amount, and “(B) Applicability. any taxpayer not described in paragraph (1) or subparagraph (A), the applicable percentage shall be determined under paragraph (1) except that such paragraph shall be applied by substituting for each dollar amount therein (as adjusted under paragraph (3)) a dollar amount equal to 50 percent of such dollar amount. “(3) Inflation adjustment.— In the case of any taxable year beginning in a calendar year after 2006, each of the dollar amounts in paragraph (1) shall be increased by an amount equal to— “(A) such dollar amount, multiplied by “(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting ‘calendar year 2005’ for ‘calendar year 1992’ in subparagraph (B) thereof. Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $500.” .Pub. L. 109–280 § 812 · 120 Stat. 780
Struck · 26 U.S.C. § 25B(h)
Pub. L. 109–280, § 812, struck out heading and text of subsec. (h). Text read as follows: “This section shall not apply to taxable years beginning after December 31, 2006.”
Source evidence
Code amendment note
Subsec. (h). Pub. L. 109–280, § 812, struck out heading and text of subsec. (h). Text read as follows: “This section shall not apply to taxable years beginning after December 31, 2006.”Enacted provision · exact public law section
SEC. 812. SAVER’S CREDIT. Section 25B of the Internal Revenue Code of 1986 26 USC 25B. (relating to elective deferrals and IRA contributions by certain individuals) is amended by striking subsection (h).Energy Improvement and Extension Act of 2008
Pub. L. 110–343 § 205(d)(1)(C) · 122 Stat. 3765
Substituted · 26 U.S.C. § 25B(g)(2)
Pub. L. 110–343, § 205(d)(1)(C), substituted “, 25D, and 30D” for “and 25D”
Source evidence
Code amendment note
Subsec. (g)(2). Pub. L. 110–343, § 205(d)(1)(C), substituted “, 25D, and 30D” for “and 25D”.Enacted provision · exact public law section
(C) Section 25B(g)(2), as amended by section 106, is amended by striking “and 25D” and inserting “, 25D, and 30D”.Emergency Economic Stabilization Act of 2008
Pub. L. 110–343 § 106(e)(2)(C) · 122 Stat. 3765
Substituted · 26 U.S.C. § 25B(g)(2)
Pub. L. 110–343, § 106(e)(2)(C), substituted “sections 23 and 25D” for “section 23”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 110–343, § 106(e)(2)(C), substituted “sections 23 and 25D” for “section 23”.Enacted provision · exact public law section
(e) Application of Sunset to Troubled Assets.— The authority of the Secretary to hold any troubled asset purchased under this Act before the termination date in section 120, or to purchase or fund the purchase of a troubled asset under a commitment entered into before the termination date in section 120, is not subject to the provisions of section 120.American Recovery and Reinvestment Act of 2009
Pub. L. 111–5 § 1144(b)(1)(C) · 123 Stat. 115
Inserted · 26 U.S.C. § 25B(g)(2)
Pub. L. 111–5, § 1144(b)(1)(C), inserted “30B,” after “30,”
Source evidence
Code amendment note
Subsec. (g)(2). Pub. L. 111–5, § 1144(b)(1)(C), inserted “30B,” after “30,”.Enacted provision · exact public law section
(C) Section 25B(g)(2), as amended by this Act, is amended by inserting “30B,” after “30,”.American Recovery and Reinvestment Act of 2009
Pub. L. 111–5 § 1142(b)(1)(C) · 123 Stat. 115
Inserted · 26 U.S.C. § 25B(g)(2)
Pub. L. 111–5, § 1142(b)(1)(C), inserted “30,” after “25D,”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 111–5, § 1142(b)(1)(C), inserted “30,” after “25D,”.Enacted provision · exact public law section
(C) Section 25B(g)(2) is amended by inserting “30,” after “25D,”.American Recovery and Reinvestment Act of 2009
Pub. L. 111–5 § 1004(b)(4) · 123 Stat. 115
Inserted · 26 U.S.C. § 25B(g)(2)
Pub. L. 111–5, § 1004(b)(4), inserted “25A(i),” after “23,”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 111–5, § 1004(b)(4), inserted “25A(i),” after “23,”.Enacted provision · exact public law section
(4) Section 25B(g)(2) is amended by inserting “25A(i),” after “23,”.Patient Protection and Affordable Care Act
Pub. L. 111–148 § 10909(b)(2)(D) · 124 Stat. 119
Struck · 26 U.S.C. § 25B(g)(2)
Pub. L. 111–148, § 10909(b)(2)(D), (c), as amended by Pub. L. 111–312, temporarily struck out “23,” before “25A(i),”. See Effective and Termination Dates of 2010 Amendment note below
Source evidence
Code amendment note
Subsec. (g)(2). Pub. L. 111–148, § 10909(b)(2)(D), (c), as amended by Pub. L. 111–312, temporarily struck out “23,” before “25A(i),”. See Effective and Termination Dates of 2010 Amendment note below.Enacted provision · exact public law section
(D) Section 25B(g)(2) of such Code 26 USC 25B. is amended by striking “23,”.American Taxpayer Relief Act of 2012
Pub. L. 112–240 title I § 104(c)(2)(E) · 126 Stat. 2313
Struck · 26 U.S.C. § 25B(g)
Pub. L. 112–240 struck out subsec. (g). Text read as follows: “In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for the taxable year shall not exceed the excess of—
Source evidence
Code amendment note
Subsec. (g). Pub. L. 112–240 struck out subsec. (g). Text read as follows: “In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for the taxable year shall not exceed the excess of—“(1) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over “(2) the sum of the credits allowable under this subpart (other than this section and sections 23, 25A(i), 25D, 30, 30B, and 30D) and section 27 for the taxable year.”
Enacted provision · exact public law section
(E) Savers’ credit.— Section 25B is amended by striking subsection (g).Pub. L. 115–97 § 11002(d)(1)(C) · 131 Stat. 2054
Substituted · 26 U.S.C. § 25B(b)(3)(B)
Pub. L. 115–97, § 11002(d)(1)(C), substituted “for ‘calendar year 2016’ in subparagraph (A)(ii)” for “for ‘calendar year 1992’ in subparagraph (B)”
Source evidence
Code amendment note
Subsec. (b)(3)(B). Pub. L. 115–97, § 11002(d)(1)(C), substituted “for ‘calendar year 2016’ in subparagraph (A)(ii)” for “for ‘calendar year 1992’ in subparagraph (B)”.Enacted provision · exact public law section
(C) Section 25B(b)(3)(B).Pub. L. 115–97 § 11024(b) · 131 Stat. 2054
Added · 26 U.S.C. § 25B(d)(1)(D)
Pub. L. 115–97, § 11024(b), added subpar. (D)
Source evidence
Code amendment note
Subsec. (d)(1)(D). Pub. L. 115–97, § 11024(b), added subpar. (D).Enacted provision · exact public law section
(b) Allowance of Saver’s Credit for ABLE Contributions by Account Holder.— Section 25B(d)(1) 26 USC 25B. is amended by striking “and” at the end of subparagraph (B)(ii), by striking the period at the end of subparagraph (C) and inserting “, and”, and by inserting at the end the following: “(D) the amount of contributions made before January 1, 2026, by such individual to the ABLE account (within the meaning of section 529A) of which such individual is the designated beneficiary.” .Department of Commerce Appropriations Act, 2023
Pub. L. 117–328 § 103(e)(1) · 136 Stat. 4459
Substituted · 26 U.S.C. § 25B(d)(1)
Pub. L. 117–328, § 103(e)(1), which directed the substitution of “the amount of contributions made before January 1, 2026” for “the sum of—
Source evidence
Code amendment note
Subsec. (d)(1). Pub. L. 117–328, § 103(e)(1), which directed the substitution of “the amount of contributions made before January 1, 2026” for “the sum of—“(A) the amount of the qualified retirement contributions (as defined in section 219(e)) made by the eligible individual, “(B) the amount of— “(i) any elective deferrals (as defined in section 402(g)(3)) of such individual, and “(ii) any elective deferral of compensation by such individual under an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A), “(C) the amount of voluntary employee contributions by such individual to any qualified retirement plan (as defined in section 4974(c)), and “(D) the amount of contributions made before January 1, 2026”,
Enacted provision · exact public law section
Sec. 103. Not to exceed 5 percent of any appropriation made available for the current fiscal year for the Department of Commerce in this Act may be transferred between such appropriations, but no such appropriation shall be increased by more than 10 percent by any such transfers: Provided, That any transfer pursuant to this section shall be treated as a reprogramming of funds under section 505 of this Act and shall not be available for obligation or expenditure except in compliance with the procedures set forth in that section: Provided further, Notification. Time period. That the Secretary of Commerce shall notify the Committees on Appropriations at least 15 days in advance of the acquisition or disposal of any capital asset (including land, structures, and equipment) not specifically provided for in this Act or any other law appropriating funds for the Department of Commerce.Pub. L. 119–21 § 70116(b)(1) · 139 Stat. 166
Substituted · 26 U.S.C. § 25B(a)
Pub. L. 119–21, § 70116(b)(1), substituted “$2,100” for “$2,000”
Unresolved: Pub. L. 119–21 was not found in the local Statutes at Large index.
Source evidence
Code amendment note
Subsec. (a). Pub. L. 119–21, § 70116(b)(1), substituted “$2,100” for “$2,000”.Effective date note
Pub. L. 119–21, title VII, § 70116(a)(3), July 4, 2025, 139 Stat. 167, provided that: “The amendments and repeal made by this subsection [amending this section] shall apply to taxable years ending after December 31, 2025.” Pub. L. 119–21, title VII, § 70116(b)(2), July 4, 2025, 139 Stat. 167, provided that: “The amendment made by this subsection [amending this section] shall apply to taxable years beginning after December 31, 2026.”Pub. L. 119–21 § 70116(a)(2) · 139 Stat. 166
Repealed · 26 U.S.C. § 25B(d)(1)
Pub. L. 119–21, § 70116(a)(2), repealed Pub. L. 117–328, § 103(e)(1), and provided that this title shall be applied and administered as though par. (1) of section 103(e) was never enacted. See 2022 Amendment note below
Unresolved: Pub. L. 119–21 was not found in the local Statutes at Large index.
Source evidence
Code amendment note
Subsec. (d)(1). Pub. L. 119–21, § 70116(a)(2), repealed Pub. L. 117–328, § 103(e)(1), and provided that this title shall be applied and administered as though par. (1) of section 103(e) was never enacted. See 2022 Amendment note below.Effective date note
Pub. L. 119–21, title VII, § 70116(a)(3), July 4, 2025, 139 Stat. 167, provided that: “The amendments and repeal made by this subsection [amending this section] shall apply to taxable years ending after December 31, 2025.” Pub. L. 119–21, title VII, § 70116(b)(2), July 4, 2025, 139 Stat. 167, provided that: “The amendment made by this subsection [amending this section] shall apply to taxable years beginning after December 31, 2026.”Pub. L. 119–21 § 70116(a)(1) · 139 Stat. 166
Amended · 26 U.S.C. § 25B(d)(1)
Pub. L. 119–21, § 70116(a)(1), amended par. (1) generally. Prior to amendment, par. (1) defined qualified retirement savings contributions
Unresolved: Pub. L. 119–21 was not found in the local Statutes at Large index.
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 119–21, § 70116(a)(1), amended par. (1) generally. Prior to amendment, par. (1) defined qualified retirement savings contributions.Effective date note
Pub. L. 119–21, title VII, § 70116(a)(3), July 4, 2025, 139 Stat. 167, provided that: “The amendments and repeal made by this subsection [amending this section] shall apply to taxable years ending after December 31, 2025.” Pub. L. 119–21, title VII, § 70116(b)(2), July 4, 2025, 139 Stat. 167, provided that: “The amendment made by this subsection [amending this section] shall apply to taxable years beginning after December 31, 2026.”Pub. L. 119–21 § 70116(a)(2) · 139 Stat. 166
Changed · 26 U.S.C. § 25B(d)(1)
Pub. L. 119–21, § 70116(a)(2)
Unresolved: Pub. L. 119–21 was not found in the local Statutes at Large index.
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
was repealed by Pub. L. 119–21, § 70116(a)(2).Effective date note
Pub. L. 119–21, title VII, § 70116(a)(3), July 4, 2025, 139 Stat. 167, provided that: “The amendments and repeal made by this subsection [amending this section] shall apply to taxable years ending after December 31, 2025.” Pub. L. 119–21, title VII, § 70116(b)(2), July 4, 2025, 139 Stat. 167, provided that: “The amendment made by this subsection [amending this section] shall apply to taxable years beginning after December 31, 2026.”
19 of 23 references resolved to an enrolled provision · 4 unresolved
Notes
Amendment of Subsection (a)
Pub. L. 119–21, title VII, § 70116(b), , 139 Stat. 167, provided that, applicable to taxable years beginning after , subsection (a) of this section is amended by striking “$2,000” and inserting “$2,100”. See 2025 Amendment note below.
Inflation Adjusted Items for Certain Years
For inflation adjustment of certain items in this section, see Revenue Procedures listed in a table under section 1 of this title and Revenue Notices listed in a table under section 401 of this title.
Editorial Notes
Amendments2001–2025 · 12 rounds
2025
Subsec. (a). Pub. L. 119–21, § 70116(b)(1), substituted “$2,100” for “$2,000”.
Subsec. (d)(1). Pub. L. 119–21, § 70116(a)(2), repealed Pub. L. 117–328, § 103(e)(1), and provided that this title shall be applied and administered as though par. (1) of section 103(e) was never enacted. See 2022 Amendment note below.
Pub. L. 119–21, § 70116(a)(1), amended par. (1) generally. Prior to amendment, par. (1) defined qualified retirement savings contributions.
2022
Subsec. (d)(1). Pub. L. 117–328, § 103(e)(1), which directed the substitution of “the amount of contributions made before ” for “the sum of—
“(A) the amount of the qualified retirement contributions (as defined in section 219(e)) made by the eligible individual,
“(B) the amount of—
“(i) any elective deferrals (as defined in section 402(g)(3)) of such individual, and
“(ii) any elective deferral of compensation by such individual under an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A),
“(C) the amount of voluntary employee contributions by such individual to any qualified retirement plan (as defined in section 4974(c)), and
“(D) the amount of contributions made before ”,
was repealed by Pub. L. 119–21, § 70116(a)(2).
2017
Subsec. (b)(3)(B). Pub. L. 115–97, § 11002(d)(1)(C), substituted “for ‘calendar year 2016’ in subparagraph (A)(ii)” for “for ‘calendar year 1992’ in subparagraph (B)”.
Subsec. (d)(1)(D). Pub. L. 115–97, § 11024(b), added subpar. (D).
2013
Subsec. (g). Pub. L. 112–240 struck out subsec. (g). Text read as follows: “In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for the taxable year shall not exceed the excess of—
“(1) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over
“(2) the sum of the credits allowable under this subpart (other than this section and sections 23, 25A(i), 25D, 30, 30B, and 30D) and section 27 for the taxable year.”
2010
Subsec. (g)(2). Pub. L. 111–148, § 10909(b)(2)(D), (c), as amended by Pub. L. 111–312, temporarily struck out “23,” before “25A(i),”. See Effective and Termination Dates of 2010 Amendment note below.
2009
Subsec. (g)(2). Pub. L. 111–5, § 1144(b)(1)(C), inserted “30B,” after “30,”.
Pub. L. 111–5, § 1142(b)(1)(C), inserted “30,” after “25D,”.
Pub. L. 111–5, § 1004(b)(4), inserted “25A(i),” after “23,”.
2008
Subsec. (g)(2). Pub. L. 110–343, § 205(d)(1)(C), substituted “, 25D, and 30D” for “and 25D”.
Pub. L. 110–343, § 106(e)(2)(C), substituted “sections 23 and 25D” for “section 23”.
2006
Subsec. (b). Pub. L. 109–280, § 833(a), reenacted heading without change and amended text of subsec. (b) generally, substituting provisions consisting of introductory provisions and pars. (1) to (3) for former provisions consisting of introductory provisions and a table of applicable percentages for amounts of adjusted gross income for a joint return, a head of household, and all other cases.
Subsec. (h). Pub. L. 109–280, § 812, struck out heading and text of subsec. (h). Text read as follows: “This section shall not apply to taxable years beginning after .”
2005
Subsec. (g). Pub. L. 109–135 substituted “In the case of a taxable year to which section 26(a)(2) does not apply, the credit” for “The credit” in introductory provisions.
2004
Subsec. (c)(2)(B). Pub. L. 108–311 substituted “152(f)(2)” for “151(c)(4)”.
2002
Subsec. (d)(2)(A). Pub. L. 107–147, § 411(m), reenacted heading without change and amended text of subpar. (A) generally. Prior to amendment, text read as follows: “The qualified retirement savings contributions determined under paragraph (1) shall be reduced (but not below zero) by the sum of—
“(i) any distribution from a qualified retirement plan (as defined in section 4974(c)), or from an eligible deferred compensation plan (as defined in section 457(b)), received by the individual during the testing period which is includible in gross income, and
“(ii) any distribution from a Roth IRA or a Roth account received by the individual during the testing period which is not a qualified rollover contribution (as defined in section 408A(e)) to a Roth IRA or a rollover under section 402(c)(8)(B) to a Roth account.”
Subsecs. (g), (h). Pub. L. 107–147, § 417(1), redesignated subsec. (g), relating to termination, as (h).
2001
Subsec. (g). Pub. L. 107–16, § 618(b)(1), added subsec. (g) relating to limitation based on amount of tax.
Statutory Notes and Related Subsidiaries
Effective Date of 2025 Amendment
Pub. L. 119–21, title VII, § 70116(a)(3), , 139 Stat. 167, provided that: “The amendments and repeal made by this subsection [amending this section] shall apply to taxable years ending after .”
Pub. L. 119–21, title VII, § 70116(b)(2), , 139 Stat. 167, provided that: “The amendment made by this subsection [amending this section] shall apply to taxable years beginning after .”
Effective Date of 2022 Amendment
Amendment by Pub. L. 117–328 applicable to taxable years beginning after , see section 103(f) of Pub. L. 117–328, set out as an Effective Date note under section 6433 of this title.
Effective Date of 2013 Amendment
Amendment by Pub. L. 112–240 applicable to taxable years beginning after , see section 104(d) of Pub. L. 112–240, set out as a note under section 23 of this title.
Effective and Termination Dates of 2010 Amendment
Amendment by Pub. L. 111–148 terminated applicable to taxable years beginning after , and section is amended to read as if such amendment had never been enacted, see section 10909(c) of Pub. L. 111–148, set out as a note under section 1 of this title.
Amendment by Pub. L. 111–148 applicable to taxable years beginning after , see section 10909(d) of Pub. L. 111–148, set out as a note under section 1 of this title.
Effective Date of 2017 Amendment
Amendment by section 11002(d)(1)(C) of Pub. L. 115–97 applicable to taxable years beginning after , see section 11002(e) of Pub. L. 115–97, set out as a note under section 1 of this title.
Pub. L. 115–97, title I, § 11024(c), , 131 Stat. 2076, provided that: “The amendments made by this section [amending this section and section 529A of this title] shall apply to taxable years beginning after the date of the enactment of this Act [].”
Effective Date of 2009 Amendment
Amendment by section 1004(b)(4) of Pub. L. 111–5 applicable to taxable years beginning after , see section 1004(d) of Pub. L. 111–5, set out as an Effective and Termination Dates of 2009 Amendment note under section 24 of this title.
Amendment by section 1142(b)(1)(C) of Pub. L. 111–5 applicable to vehicles acquired after , see section 1142(c) of Pub. L. 111–5, set out as an Effective and Termination Dates of 2009 Amendment note under section 24 of this title.
Amendment by section 1144(b)(1)(C) of Pub. L. 111–5 applicable to taxable years beginning after , see section 1144(c) of Pub. L. 111–5, set out as an Effective and Termination Dates of 2009 Amendment note under section 24 of this title.
Effective Date of 2008 Amendment
Amendment by section 106(e)(2)(C) of Pub. L. 110–343 applicable to taxable years beginning after , see section 106(f)(1) of Pub. L. 110–343, set out as an Effective and Termination Dates of 2008 Amendment note under section 23 of this title.
Amendment by section 205(d)(1)(C) of Pub. L. 110–343 applicable to taxable years beginning after , see section 205(e) of Pub. L. 110–343, set out as an Effective and Termination Dates of 2008 Amendment note under section 24 of this title.
Effective Date of 2006 Amendment
Pub. L. 109–280, title VIII, § 833(d), , 120 Stat. 1004, provided that: “The amendments made by this section [amending this section and sections 219 and 408A of this title] shall apply to taxable years beginning after 2006.”
Effective and Termination Dates of 2005 Amendment
Amendment by Pub. L. 109–135 subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001, Pub. L. 107–16, § 901, in the same manner as the provisions of such Act to which such amendment relates, see section 402(i)(3)(H) of Pub. L. 109–135, set out as a note under section 23 of this title. Title IX of Pub. L. 107–16 was repealed by Pub. L. 112–240, title I, § 101(a)(1), , 126 Stat. 2315.
Amendment by Pub. L. 109–135 effective as if included in the provisions of the Energy Policy Act of 2005, Pub. L. 109–58, to which it relates and applicable to taxable years beginning after , see section 402(m) of Pub. L. 109–135, set out as a note under section 23 of this title.
Effective Date of 2004 Amendment
Amendment by Pub. L. 108–311 applicable to taxable years beginning after , see section 208 of Pub. L. 108–311, set out as a note under section 2 of this title.
Effective Date of 2002 Amendment
Pub. L. 107–147, title IV, § 411(x), , 116 Stat. 53, provided that: “Except as provided in subsection (c) [amending sections 23 and 137 of this title and enacting provisions set out as a note under section 23 of this title], the amendments made by this section [amending this section, sections 23, 24, 38, 45E, 45F, 63, 137, 401 to 404, 408, 409, 412, 414 to 417, 457, 530, 2016, 2101, 2511, 4980F, and 6428 of this title, sections 1003, 1054, 1055, 1082, and 1104 of Title 29, Labor, and provisions set out as notes under sections 38, 415, and 4980F of this title] shall take effect as if included in the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 [Pub. L. 107–16] to which they relate.”
Effective Date
Amendment by section 618(b)(1) of Pub. L. 107–16 inapplicable to taxable years beginning during 2004 or 2005, see section 312(b)(2) of Pub. L. 108–311, set out as an Effective Date of 2001 Amendment note under section 23 of this title.
Amendment by section 618(b)(1) of Pub. L. 107–16 inapplicable to taxable years beginning during 2002 and 2003, see section 601(b)(2) of Pub. L. 107–147, set out as an Effective Date of 2001 Amendment note under section 23 of this title.
Amendment by section 618(b)(1) of Pub. L. 107–16 applicable to taxable years beginning after , see section 618(d) of Pub. L. 107–16, set out as an Effective Date of 2001 Amendment note under section 24 of this title.
Coordination With Secure 2.0 Act of 2022 Amendment
Pub. L. 119–21, title VII, § 70116(a)(2), , 139 Stat. 167, provided that: “Paragraph (1) of section 103(e) of the SECURE 2.0 Act of 2022 [div. T of Pub. L. 117–328, amending this section] is repealed, and the Internal Revenue Code of 1986 shall be applied and administered as though such paragraph were [sic] never enacted.”
Credits
2001–2025 · 13 acts
- 2001Added and amended Pub. L. 107–16, title VI, § 618(a), (b)(1), , 115 Stat. 106, 108
- 2002Pub. L. 107–147, title IV, §§ 411(m), 417(1), , 116 Stat. 48, 56
- 2004Pub. L. 108–311, title II, § 207(4), , 118 Stat. 1177
- 2005Pub. L. 109–135, title IV, § 402(i)(3)(D), , 119 Stat. 2614
- 2006Pub. L. 109–280, title VIII, §§ 812, 833(a), , 120 Stat. 997, 1003
- 2008Pub. L. 110–343, div. B, title I, § 106(e)(2)(C), title II, § 205(d)(1)(C), , 122 Stat. 3817, 3838
- 2009Pub. L. 111–5, div. B, title I, §§ 1004(b)(4), 1142(b)(1)(C), 1144(b)(1)(C), , 123 Stat. 314, 330, 332
- 2010Pub. L. 111–148, title X, § 10909(b)(2)(D), (c), , 124 Stat. 1023
- 2010Pub. L. 111–312, title I, § 101(b)(1), , 124 Stat. 3298
- 2013Pub. L. 112–240, title I, § 104(c)(2)(E), , 126 Stat. 2322
- 2017Pub. L. 115–97, title I, §§ 11002(d)(1)(C), 11024(b), , 131 Stat. 2060, 2076
- 2022Pub. L. 117–328, div. T, title I, § 103(e)(1), , 136 Stat. 5286
- 2025Pub. L. 119–21, title VII, § 70116(a)(1), (2), (b)(1), , 139 Stat. 166, 167.
Show as published
(Added and amended Pub. L. 107–16, title VI, § 618(a), (b)(1), , 115 Stat. 106, 108; Pub. L. 107–147, title IV, §§ 411(m), 417(1), , 116 Stat. 48, 56; Pub. L. 108–311, title II, § 207(4), , 118 Stat. 1177; Pub. L. 109–135, title IV, § 402(i)(3)(D), , 119 Stat. 2614; Pub. L. 109–280, title VIII, §§ 812, 833(a), , 120 Stat. 997, 1003; Pub. L. 110–343, div. B, title I, § 106(e)(2)(C), title II, § 205(d)(1)(C), , 122 Stat. 3817, 3838; Pub. L. 111–5, div. B, title I, §§ 1004(b)(4), 1142(b)(1)(C), 1144(b)(1)(C), , 123 Stat. 314, 330, 332; Pub. L. 111–148, title X, § 10909(b)(2)(D), (c), , 124 Stat. 1023; Pub. L. 111–312, title I, § 101(b)(1), , 124 Stat. 3298; Pub. L. 112–240, title I, § 104(c)(2)(E), , 126 Stat. 2322; Pub. L. 115–97, title I, §§ 11002(d)(1)(C), 11024(b), , 131 Stat. 2060, 2076; Pub. L. 117–328, div. T, title I, § 103(e)(1), , 136 Stat. 5286; Pub. L. 119–21, title VII, § 70116(a)(1), (2), (b)(1), , 139 Stat. 166, 167.)